British motor cover provider Sabre Insurance has reported that Covid-19 has caused extreme volatility in its premium volumes, as well impacting the amount of quotes issued to consumers.
The firm said premiums were down 5% year-on-year, at £43.7m over the twelve months ended 31 March, and new business quotes were down 25% since the coronavirus lockdown began.
In its Q1 trading update, Sabre also pointed to competitor pricing and a lack of car sales during lockdown as reasons for the volatility.
Chief executive Geoff Carter said: “With market volatility expected to continue at least until the current social distancing measures start to ease, and probably for several months thereafter, it remains difficult to forecast the full-year premium outcome with any certainty at this stage.
“However, we are confident that the year-on-year reduction in premium written reflects the temporary and unique market conditions and volatility.”